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>> this is nightly business report with tyler mathisen and susie gharib brought to you by -- >>, international tools for an ever changing financial world. the stock advisor guides and helps generate income during a period of low interest rates. real money helps you think through ideas for investing and trading stocks. action alerts plus is a charitable trust portfolio that provides trade by trade strategies, online, social media, wild week. we saw ups and big slides down, but now that the nerve wracking week is over what happens next? >> sentenced reduced.
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he was the man at the center of the nbig financial scandal and e was told he'll get out of jail early. >> age of insourcing after years of seeing jobs go overseas, google and apple are reversing the trend keeping jobs here in the u.s. that and more tonight on "nightly business report" for friday, june 21st snchts welcome, i'm tyler mathisen, susie gharib has the evening off. you couldn't really call it a come back day after thursday's 350-point doe infarction but the patient was stabilized despite the quadruple day when contracts expire. the dow rocked and rolled and finished higher. the nasdaq fell 9% last quarter
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reported yesterday. nasdaq was $33.57, the s and p 0 00. the treasure are you note hitting 2.59%. the highest in years. no, stocks don't always go up, yes, the fed will stop buying bonds sometimes but it also left questions hanging in the winds. for us thoughts about investments this week were unnerving. >> there is a lot of uncertainty out there. >> if you take a few bruises, put your best game in there. what do you do? that's the stock market. that's how it works. >> reporter: at the start of the week a two-day runup on the due and s and p put may's records back in sight and wednesday, a 200-point drop after ben bernanke put on notice the fed may trim bond buying before the end of the year and ended not
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long after that. >> we will continue to reduce the pace of purchases in measured steps through the first half of next year ending purchases around mid year. >> reporter: with the end of the fed's asset buying program in sight, stocks dropped another 300 points thursday before stabilizing today. of course, that plan depends on whether the economy continues to improve. gone in two days were was last two months of gains in the stock market. for the year stocks are up more than 12%, even if a lot of us have doubts about the health of the economy. >> unemployment needs to be fixed, housing market. >> i'm worried about the economy. >> reporter: what is next? the year is almost half way down. corporate reports will come out soon and experts are nervous, housing recovery, mortgage rates are inching up. >> these stocks will be volatile until we get clarity on what the feds are doing.
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>> reporter: there is no shortage of opinions even inside the fed itself. jim bullard said the bond buying was inappropriate time. >> i think the fed was purposely trying to take air out of the housing market and stock market. they don't want the stock market going up 20% every six months and house prices rising 10% year after year. >> reporter: they took bernanke at his word, the economy is recovering and a policy charge is a short-term shock to the system. >> we're babying, over medicating this economy. this economy is like a 12-year-old sitting on a buy cycle with training wheels. it can go forward on it's own. >> where will you put your money? cash? i don't think so. the three-year? i don't have an interest in that duration risk. i'm going to put it in equity.
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>> market watchers expect people to buy blue chips to dress up port follows. enron may have a little bit more to be upset about today. a shortened prison sentenced for the jailed jeffrey skilling. we were in the courtroom for this controversial decision and joins us live from houston. scott, why the more lenient resentencing and why right now? >> reporter: well, you know, it makes sense for a guy in charge of an energy trading company, this was a trade off. they said 24 years was too hash and should be more like 15 or 16 years. skilling wasn't willing to settle for that initially. he was going to charge the government committed misconduct in prosecuting the case. that would drag it out longer so the government and skilling came to this agreement where skilling would drop the remaining
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appeals, $40 million would be returned to the investors, the convictions would stand but he would get out of prison early, 14 years and good behavior he'll be out by 2017. >> give us aceps of ttmosphere courtroom today and how did skilling look? >> reporter: he is 59 years old and looks every bit of that. he's grown a beard since being in prison. he looks like he's aged somewhat. he was in gracen garb and hand kuchs. the courtroom was packed with skilling supporters. 250 people wrote in support of him. among the people in the courtroom, his family, wife rebecca, members of ken lay's family. he passed away in 2006 and those convictions wiped out. one victim spoke for those victimized by the scandal. dianna peters said skilling betreyed the employee's trust.
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>> talk more about that, scott. what does this mean for enron's victims? >> reporter: well for one thing they will get this $20 million held in escrow since the trial in 2006. that will go to the victims. that's pittens from the money lost and $7 billion mainly with some of the banks involved. they didn't come down that much. people will get their money back and most important, they say, skilling can't challenge the convictions. >> scott, hon norary citizen of houston after all the type you spent there. fell in may from job rolls in california, west virginia, new york and hawaii. california's unemployment rate is 8.6% higher than average but the lowest in five years. north
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lowest of 3.2% and nevada highest 9.3%. it rose in 17 states and re345i7br remained the same in eight more. car max the nation's biggest used car dealership chain with 10 stores nationwide reported a 21% rise in profits last quarter on a 22% jump in sales. prices on those used cars were also up about 1% from a year ago. if you're flying instead of driving, there may be some relief on board that plane. the federal aviation administration is expected to relax the ban on using person electronic devices during taxiing, landings. the ban of making cell phone calls will likely remain in effect but passengers may soon be allowed to use e-readers, mp 3s and laptops.
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alec baldwin famously thrown off a flight in 2011 for refusing to stop playing "words with friend" tweeted this. if you're flying first class on american air, i would apply on extra measure of restrict. the easing back of those, shares of the airline tumbled after pricing $17 a share. go go closed at $16. >> another big tech company is on the move. the company that makes smart phones for google and mac pros for apple is looking to move manufacturing back to the u.s. it called on shoring and john has the story tonight. >> reporter: it's become an article of faith in america these days, manufacturing jobs that went overseas can't come
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back. american workers cost too much and don't have the cutting-edge skills to build the latest gadget. what if that is wrong? in the past month apple and google announced products they plan to make here. apple is making a computer. >> it's designed by brilliant engineers, assembled here in the usa. it's a fantastic device we want to get in the hands. >> reporter: google has a risky smart phone we haven't seen yet. for google it's a gamble. if it succeeds made in america is a major selling point for a cutting-edge phone. if it fails, american dreams and real american jobs are at stake. >> certainly, it will boost moral. a lot of people for a long time were kind of economic determining, they assumed that our jobs particular our low-skill jobs would go abroad to the lowest waged countries, and that was never wholly the case, but when manufacturing
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does start coming back, people's hopes will get up. >> reporter: flex tronics will build the mac pro and the x phone. why make them in the u.s. the cost of labor is raising in china and malaysia for one and when there is a brand-new product there needs attention, sometimes it worth having it crafted close to home. >> we're seeing work move into texas where we put up the factory and north carolina, south carolina, these places the governments are aggressive at improving regulation so it's pro-business and keeping taxes down and working to stimulate jobs. >> it will probably take years for this story to play out for us to see if tech really can bring american manufacturing jobs back long-term but this initial chapter is key. if names as big as apple and
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google can't succeed at this, chances are the others won't be about to, either. >> i'm jon fortt. coming up, how big american companies are taking advantage of a biggurbanization but first look at the best performing stocks of the week. violent protests continue to rock the streets of brazil'scit. they rallied the government for raising services and some
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cancelled the transit fair hikes. more unrest expected tonight in other major cities. two u.s. senators say a chinese company's purchase of smith field foods is quote difficult to square, but the chinese's government's restrictions on i'm porpts of meat. u.s. farmers and ranchers should be protected calling for a full review of the world's largest pork producer. in china the government is pushing ahead with a sweeping plan to move millions of rural residents into more populated areas and this growth and urbanization has not gone unnoticed. >> reporter: all over the world, people are maheading to the cit that no more true than china. that's good for companies like
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honey well. >> the wealth of these people is increasing at a tremendous peak. >> reporter: honey well is setting big on china's plans to build up cities. the american industrial giant opened up factories like this one expecting urbanization to translate here. >> urbanization is really if you look at it, it's a building of the mega, mega movement and not in one location but all across china, new towns, new subways, new trains, new planes, new hospitals and they are all in the honey well scope. >> reporter: if china doesn't urbanization this fast, would your growth be as strong? >> of course not. >> reporter: they are making and selling brake pads here and double the country's growth rate which is above 7%. to build it cities, china needs everything, australia iron for steel beams to american
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bulldozers. at shopping plazas like this one you can see all sorts of international brands with more and for chinese moving into the city starbucks, h and m and gucci has more than ever before. >> they create jobs for us in china and u.s. many of these products in the foreign countries, as in the process of localization you create for jobs for the foreign countries whether the u.s., kber m -- germany or u.s. so everybody benefits. >> reporter: welcomed news for everybody back at home. and tonight in market focus, some bargain hunting on the day after the big dow dipper. bristol myers gaining back most of thursday's loss as investors cheered for leukemia treatment and bristol myers up 2.5% on above average a $45.73.
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dish network touching a five-year high after it abandoned efforts to close in on sprint. they won't be spending it now. that didn't matter to the market today as dish network gained more than 3% to close at $41.40. dish up 7% since it lost that sprint bid back in april. archer daniels midland gained after saying that it's in talks to sole the coco business, 4% of the overall sales. adm shares were up 1.5% closing at $33.09 and facebook gained today on an upgrade to buy and some astonishing stats on instagram video. one year of video was uploaded in the first eight hours. in other words, it would take a year to watch all of those videos and remember, they are only 15 seconds long. facebook acquired instagram in september 2012 and today's trade
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they tacked on 2.5% closing at $24.53. time to turn to the market monitor guest who is positive on equities over the short and long-term. she's judy, portfolio manager. what a week, great week to have you here with us. explain why you think this is not just -- not a fatally wounded bull market. >> well, i'm very happy to be here, tyler. i think that the move by the fed and the comments by bernanke indicate the economy is growing, not too rapidly, not too slowly but just right. that's the key to the pen of the market. we're positive near term and long term and the fed is on the track they set there is really nothing new in what they said. >> judy, we did see a lot of volatility this week and seen interest rates move quite a bit
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higher than they were a couple we weeks ago. does that worry you at all? it's good for savers but does it worry you about the ability to move forwart in the market? >> the interest level has moved up. it was pretty dramatic in the last couple weeks but at this current level, the ten-year treasury 2.5%, that's still a very reasonable interest rate. i believe the economy is grow with that rate. it's not a problem for the housing market and of course, the housing market is key for the growth in the economy but housing is still extremely affordable at record rates in terms of affordability. it would take rates going much higher before we saw that, you know, really affect or impact the housing market. >> viewers have their pencils ready and a couple stocks are banks, one big, one somewhat smaller. let's start with the big one, which is citi group. >> okay. we focus on fundamentals and the
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fundamentals are very positive for citi group. there is several positive factors favoring citi group. improvement in the capital market activity and citi group benefits from the real estate market. in fact, they are going to be releasing 8.57 -- $8.5 billion in reserves so that will be a strong tail wind this year. on top of that the evaluation is very attractive. the stock is selling at 63% of book, a low pe ratio and i think the stock could get up to book value. >> i would assume housing would help the next pick, which is regions. >> regions financial is a regional bank. about 55% of their portfolio is
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in loans so they benefit from the real estate market. they are selling at an attractive evaluation and have a strong yield and we're expecting growth. >> let's see if we can squeeze in two quickly, 15 seconds for each, santa fe and phillips 66. >> okay. on santefe great farm suit kill company and great in the diabetes market price. they have one of the strong insulin drugs and that business is doing very well. they have also got very strong physicians -- >> and phillips. >> and on phillips, they are -- became independent conaco phillips. strong cash flow, over 4 billion we project this year and potential to grow that dif dent at a very nice clip and selling at a 7 multiple. >> i assume your funds own all
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of these companies than your business does. any disclosures? >> no, that would be the primary disclosure. >> thank you very much. portfolio manager with eatof et. how dominos turned things around and delivered for some of the worst performing stocks on the s and p this week. starbucks is raising the prices. the java giant plans to jack up prices on some drinks but only by an average of 1%. some say it will be the first price hike in two years even
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though coffee bean prices are dropping they blame it on higher rents, labor costs and raising milk and sugar. >> and those rising material costs are some of the biggest challenges for eateries. and there is one chain that worked hard to figure what they want and succeeded delivering for diners and investors. we have the latest on come back companies with a look at pizza giant, co dominos. >> reporter: in 2009 dominos ranked bottom tied with chuck key cheeses. particularly galling for the company that virtually invented the pizza delivery chain business. the situation was desperate. >> the combination of poor result ths for a couple years a surveys coming out that were not particularly kind to us and the quality of our pizza, it sent us into a room one day.
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we made the decision it was time to really fix us. >> reporter: but now, four years later, dominos is at the top of the latest rankings and people love their pizza. >> their food is really delicious. it's really savering. like money and have a lot of good deals. >> how did dominos do it. >> they fixed the pizza. >> everything is on the table. you can chance anything and we just simply want to have the best pizza out there. >> reporter: then they stream lined business adding online ordering for convenience and to drive sales. >> digital orders have been growing about 5% a year as a mix of our total sales so we're now in the 35 to 45% range. customer satisfaction is higher and order accuracy is higher. the ticket on those orders is
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little higher. the labor cost is a little lower. so everything is better. >> reporter: those who invested in domino's pizza seen a sweet return after hitting a low of $3.30 a share in 2008 the stock has run up nearly 1800%. the turn around has been good for investors and also employees. >> over 90% of our franchises in the u.s. started as hourly workers in our stores, either as delivery drivers or customer service. they worked their way up through -- to become a manager and bought their first store. >> reporter: but there are challenges ahead for dominos, one is growing the international business, especially in china to keep up with the competition. >> i think one of the ways that dominos can succeed in china is having an approach specializing in chicken, which is a very popular fast food staple in
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china. >> reporter: the stock doubled since last year at this time still have room to run? >> i don't think it moves much higher right now. i think the challenge that dominos faces in the next 12 months will be up against a tougher year of comparisons, particularly in the u.s. coming off the introduction of pan pizza very late in the third quarter. >> reporter: for nightly business report i'm jackie. a roller costar end to wall street and comes for the time of summer. the full throttle roller coaster debuting at six flags magic mountain outside los angeles. i bet, sue, you knee up there. >> i did. >> it's the worldest tallest and fastest looping roller costar top speed 70 miles an hour through a 160-foot high loop. >> they didn't have that when i went to magic mountain. that's nightly business report
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for tonight. thanks for joining us. >> i'm tyler mathisen have a great weekend everybody. we'll see you back here monday night. nightly business report has been brought to you by -- >> interactive financial multi media tools for an ever changing financial world. the stock advice sore helps and real money helps you think through ideas of investing and trading through stocks. we provide trade by trade strategies online, mobile, social media, we are the
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♪ it's all right, it's okay ♪ ♪ doesn't really matter if you're old and gray ♪ ♪ it's all right, i say it's okay ♪ ♪ listen to what i say ♪ it's all right, doing fine ♪ ♪ doesn't really matter if the sun don't shine ♪ ♪ it's all right, i say it's okay ♪ ♪ we're gettin' to the end of the day ♪ standing: well played, junior! now give it and go. right wing, right wing. go, go. you all right, son? gerry? i'm okay, granddad. are you sure? good boy, you're playing well. keep it up. come on, son. go in hard, what we spoke about!

Nightly Business Report
PBS June 21, 2013 6:30pm-7:01pm PDT

News/Business. Susie Gharib, Tyler Mathisen. (2013) New. (CC) (Stereo)

TOPIC FREQUENCY China 11, Us 9, U.s. 9, Skilling 5, Google 5, Tyler Mathisen 3, Citi 3, Houston 2, Susie Gharib 2, Scott 2, California 2, Enron 2, America 2, Granddad 1, Savering 1, Myers 1, Big As Apple 1, Bernanke 1, Apple 1, Federal Aviation Administration 1
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Duration 00:31:00
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Scanned in San Francisco, CA, USA
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on 6/22/2013